I am a Housing Critic

I am a housing critic.

I go into houses each and every day and I am asked to pass my opinion. I am asked about colors and layouts and light and quality and location and fences and appliances and utilities and fireplaces and flooring and ceiling heights and roofing and basements and — well you get the picture.

We all have opinions about housing — each of us. Buyers, sellers, agents, appraisers, Zillow, the assessors office, decorators, inspectors and the stereotypical nosy neighbors. And you know what else? They all have value, if you understand what each opinion means.

Here are some lessons to help you navigate this critic-based industry.

Listen to the Topic, Not the Tone

Phil Sims, former Super Bowl winning QB (and MVP of the Super Bowl) used to talk about how his coach, Bill Parcells used to deliver his critiques in a manner that ranged between humbling (on a good day) and downright humiliating the rest of the time. Sims said that once he learned to listen to the message that his coach was delivering not the way in which is was delivered, he became a much better player.

I think everyone in the process — agents, buyers, sellers — we tend to take things personally and hear an insult when we should be learning a lesson. When a buyer does not like a house because of a particular feature or characteristic and delivers what was intended to be constructive criticism, more often than not, the seller feels rejected, hurt or otherwise offended and loses the ability to draw any lesson from the message.

Learning to listen to these criticisms at their most basic level allows you to glean important information about market preferences and not become bogged down in the tone of the message.

Qualify the Criticism

Some criticism can be incredibly useful while some can be ignored completely — knowing how to tell the difference is key. And it is the agent’s job to figure out how much importance to attach to the message.

Imagine yourself as a seller of a small townhome on a crowded city block and you receive criticism from a buyer who is from out of town, on their first day out and is looking at townhomes, land in the country, a new homes on a cul-de-sac in suburbia — how much credence should you give the criticism? On the other hand, how seriously should you take the criticism from a buyer who looked at 5 townhomes in your neighborhood and bought the one down the street?

Unqualified criticism carries little value. Qualifying the criticism allows us to either gain insightful knowledge about the market we are competing in or brush off a message that may have otherwise caused us anxiety.

‘One is Data Point, Two is a Trend’

You hear this statement uttered quite often at One South, especially when it comes to seller feedback. At its core, it means ‘be patient and don’t overreact.’

You can’t please everyone and you would be wasting your time and money to try — not everyone who comes through your home is going to love it. That being said, if you begin to notice trends in complaints (3 people think the yard it too small and the kitchen is too far from the great room), you would be remiss to continue to ignore them.

Pay attention to what people are saying — if you hear a critique once, it’s likely just a personal preference that may not reflect the market expectations as a whole. But if you start to hear the same critique come up showing after showing, it’s probably in your best interest to go ahead and fix the problem or adjust the price accordingly.

Price is the Ultimate Criticism

Non-specific negative feedback, for me, is the worst type of feedback to receive. When you receive criticism that is obviously negative but doesn’t point to an issue (or issues), it makes it hard to develop a strategy. That said, even nebulous or vague feedback can have value, too.

Price drives buyer expectations, and buyer expectations have the biggest influence on the types of criticism you may receive regarding your home. If your home is grossly overpriced, criticism will be largely negative because individuals have come in with an expectation that reflects a price higher than what you have delivered. On the other hand, if your home delivers above and beyond what buyers expect at its listing price, you may hear nothing but rave reviews and high levels of interest and intrigue. The key is finding the spot in the middle – where your price matches what the market demands in terms of features, size, location, etc. Paying close attention to the tone of the criticism you receive will give you great insight into the quality of your home matches (or does not match) with price at which you are offering it.

The lesson (and this is especially important when you drop price) — listen to when the feedback begins to change in tone from openly negative to balanced. Remember, you want some criticism (otherwise you probably have under-priced the home!), but a fair balance of of positive and negative comments — the kind of balanced feedback that suggests your home is priced well and can be competitive in the market.

Summary

Despite the fact that housing, like stocks, bonds, mutual funds, rare automobiles or foreign currency, is just an asset, it is a personal one and the criticism we receive on housing somehow seems to carry more bite to our egos when it is rejected — it shouldn’t.

We try to tell our clients that their homes are worth what the market says they are worth, not what the owners say, nor the agents say, nor Zillow, nor the appraiser. The market is never kind, but it is always correct, and will tell you everything you need to know if you are willing to listen. That said, it is amazing the number of people who choose to hear feedback, but draw the incorrect conclusion from the message.

Remember, be objective, don’t take it personally, and pay attention to trends. If you can do those things, the criticism you receive will be constructive and you will maximize the value of your home.